Play AMX Calls

Plus Possible Trades on BG and DRYS

By Bryan Bottarelli
Thursday, July 05, 2007 10:22 AM EDT
Thu, 5 Jul 2007 14:22:00 GMT

Dear Bottarelli Research Member,

The markets continue to offer us loads of attractive trading formations — and I plan to take full advantage of the very best opportunities. One company that’s been appearing more frequently on my watch list is Bunge (BG – NYSE).

BG

The increased demand for corn has forced farmers to plant record quantities this year — which in turn as reduced the amount of soybeans planted in 2007. As a result, we’ve seen a pop in agricultural commodity companies like Bunge — which specialize in grains and oilseeds such as soybeans, sunflower seeds, and canola. The stock has been on a nice run lately, and I may look to enter calls on any dips.

Also moving up alongside the same trading thesis is DryShips (DRYS – NASDAQ). The operator of a 35-ship fleet transports commodities like coal, iron ore, bauxite, phosphate, fertilizers, and steel products on a worldwide scale. If the stock can break through the $45.00 level, it’ll be time to enter an upside call play.

DRYS

These two plays on BG and DRYS could trigger early next week. But for now, the best opportunity comes in the form of America Movil S.A.B. de C.V. (AMX – NYSE).

AMX

The company offers fixed-line, wireless, and cellular telecommunications services in Latin America, Mexico, Argentina, Brazil, Guatemala, El Salvador, Nicaragua, Honduras, Chile, Colombia, Ecuador, Paraguay and Peru, and the company has been making money hand over first. In fact, many estimates say the fortune of AMX owner Carlos Slim has now surpassed that of Microsoft co-founder Bill Gates. Heck, when your wealth is multiplying at a rate of $3.5 billion per month, it’ll certainly add up quickly. Chart-wise, the new 52-week high that just triggered at $65.76 indicates that the stock is about to break out to the upside, so let’s enter AMX August calls now.

PLAY: Buy the AMX August 65 Calls (AMX HM) at or under $3.30, good for the day. Place a protective stop limit at $2.00.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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